In the beginning there was the word and the word was “DOIT.” And thus the first project manager received an assignment. This project manager was named Sam.*
Sam's reaction was normal for the species being, “Golly, gee, what do I do now? We don't do projects!
Perhaps the applicant for the housekeeping position can state “I don't do windows!” and get the job. Today's manager or executive who says “We don't do projects!” is in trouble. Business literature is replete with articles promoting flatter organizations, the team approach to management, concurrent engineering, reduced time to market, and empowering employees. All of these are synonymous with the application of, inherent in, or are best accomplished with the aid of, modem project management (MPM).
Indeed, it is suggested that most executives spend more of their time concerned with work being performed in the project mode than in any other mode. In general, executives are concerned about the future products and capabilities of the organization, i.e., the corporate strategy. Corporate strategy is implemented through projects. Successful implementation of corporate strategy is therefore dependent on successful project management. Thus, the successful executive must not only comprehend projects and project managers, but must be skillful in managing them.
Although receiving less publicity than the new concepts of Total Quality Management (TQM), Material Requirements Planning (MRP), and Just-in-Time (JIT), another ‘‘revolution” has been growing in importance in the last 35 years: planning, scheduling and control of project work. This new concept in management dates back to the mid-1950s and has been characterized by varying degrees of interest and understanding. Today, it is the basis for a major portion of economic activity: the management of change. It has developed from being a very specialized technique to a management philosophy supported by a variety of techniques, concepts, and theory.
Indeed, project management has progressed to the point of being recognized as a distinct career and profession. Project managers are served by two major professional societies—the Project Management Institute (PMI), primarily in North and South America, and the International Project Management Association (INTERNET), primarily in Europe. Among other things, these societies have staged meetings, conducted training and education programs, certified Project Management Professionals, and accredited academic programs in project management.
Many people have adopted a stereotype of project management as being applicable to very large projects, primarily in construction and aerospace. While it has been very valuable in these industries, it has also been used extensively in the pharmaceutical, automotive, utility, communications, and many other industries, and in product development, information systems, and many other functional areas. It has been used on athletic events, including the Olympic Games, and for movie production. More recently, network planning has found its way into the executive suite as a convenient way in which to express corporate strategic plans, including alternative methods to achieve corporate objectives.
Indeed, it is difficult to imagine an industry or functional area of business for which MPM would not prove useful. Even in the most repetitive of industries and functions there is change that must be managed. Wherever there is change to be managed there is an opportunity to accomplish that change more efficiently and effectively through the use of MPM.
Along the way to this assignment, Sam had gained experience on some smaller efforts which many will recognize as “Honey-dos” as in, “Honey, do this and honey do that.” These efforts, each of increasing magnitude, had prepared Sam for this even larger project—to create a means for crossing a river!
There are many ways to think about projects. They can be described in many ways and they can be defined differently. Perhaps that is why there has been so much ambiguity about and lack of appreciation for project management.
Projects can be described by example. Most such descriptions start with things such as the Pyramids, the Great Wall of China, and other undertakings of ancient history. These were major construction projects and, indeed, construction is inherently a project-oriented industry. A modem construction project that rivals all others is the English Channel Tunnel, a $12 billion dollar effort that will open in 1993 [7].
There are other project-oriented industries, not the least of which is the pharmaceutical industry. The search for new drugs has led to a remarkably high level of health and life expectancy. The aerospace industry is noted by its accomplishments, not only in space but also for the technological developments which have changed the way we live and work.
But not all projects are of such magnitude. Remodeling or redecorating a house is certainly a project. A community fundraising campaign is a project. Apolitical campaign is a project. Developing a new product, developing the advertising program to promote that product, and training the sales and support staff to effectively move and service the product are all projects. Responding to an EPA complaint is a project, particularly if the complaint is substantial. Indeed, it is possible that most executives spend more of their time planning and monitoring “changes” in their organization, i.e., projects, than they do in maintaining the status quo.
SOME CHARACTERISTICS OF PROJECTS
The other side of the river was abundant with food … it was greener. Thus, Sam's client was anxious to get to the other side. Indeed, it was during this project that the query, “Are we almost there yet?” was first coined. Sam was learning about the role and nature of stakeholders in projects.
Projects are the change efforts of society. The pace of change, in whatever dimension, has been increasing at an ever faster rate. Effectively and efficiently managing change efforts is the only way organizations can survive in this modem world.
Indeed, projects are “ubiquitous:” they are everywhere, everybody does them. If they are so common, then why all the “fuss”? Very simply, better ways of managing projects have been and are being developed. Those organizations that take the lead in implementing these capabilities will consistently perform their projects better and be more competitive in general.
The “Project” is not synonymous with the “Product of the Project.” The word “project” is often used ambiguously, sometimes referring to the project and sometimes referring to the product of the project. This is not a trivial distinction as both entities have characteristics unique to themselves. The project is the process by which the product is produced. The project is intended to come to an end, i.e., have a finite life. The product of the project is generally intended to have a long, i.e., more nearly infinite life.
Projects are composed of activities, usually non-repetitive, operating on an interrelated set of items which inherently have technologically determined relationships. One activity must be completed before another can begin. Generally, these technological relationships are very difficult to violate, without changing the plan or the design of the product. For example, if getting one's self dressed is considered a project, there is a technological relationship between putting on your socks and putting on your shoes. Whether you put on both socks and then both shoes or complete the left foot before the right foot is a question of preference. In modem project management, a network diagram is used to portray these technological sequences.
Projects involve multiple resources, both human and non-human, that require close coordination. Generally there is a variety of resources, each with its own unique technologies, skills and traits. Not only is there a varied mix of resources, but the mix changes over time and the total units of resources used changes over time. These varied approaches lead to an inherent characteristic of projects-conflict. There is conflict between resources as to concepts, theory, techniques, etc. There is conflict for resources as to quantity, timing and specific assignments. And there are other sources of conflict in projects. Thus, a project manager must be skilled in managing such conflict.
Projects are unique undertakings. They result in a single unit of output. There are more economical ways to produce multiple units of a product. The installation of an entertainment center by a home owner with the help of a few friends is a project. The objective is to complete the installation and enjoy the product of the effort.
The home owner is not likely to repeat this process frequently. It is not unusual, however, for multiple units to be involved in a project at one level of detail or another. A high-rise building typically involves multiple floors, each of which are nearly alike. Installing the windows in such a building certainly involves multiple units.
PMs
Careful examination of the activities of which a project is composed discloses that many of them are rather routine and performed frequently in the organization. Often 10 percent or less are really unique. Nevertheless, because the products of different projects are seldom the same, the specific manner in which the activities are combined, their work content, and other such characteristics of activities result in the total project being unique.
Projects come in all sizes. Size does not determine whether or not a work effort is a project or not. Size only impacts the degree and extent to which the techniques and principles of project management are employed. Organizations are well served to standardize many practices of project management but differentiate the intensity of application as a function of size, importance of the project to the organization, and the nature and availability of the resources to be employed. This standardized approach aids in the orderly development of project management personnel in a consistent and efficient manner.
Managerial emphasis is on timely accomplishment of the project as compared to the managerial emphasis in other modes of work; for example, efficiency. A need exists for the resulting product of the project, otherwise the project would not have been authorized. Most projects require the investment of considerable sums of money prior to enjoyment of the benefits of the resulting product. Interest on these funds is a major reason for emphasis on time. Being first in the market often determines long-term market position, thus creating time pressure.
Thus, time is of the essence. This time pressure, combined with the need to coordinate multiple resources, explains why most “project management systems” have emphasized time management.
THE DEVELOPMENT OF MPM
Sam yearned for a better way to get to the objective of the project faster. After all, even the most patient, dedicated project manager grows weary of repeated queries, “Are we almost there yet?” But, alas, it was many, many generations of Sams later before the development of MPM.
The first developments in MPM planning and scheduling were sponsored by duPont [6] and the U.S. Navy [8], followed closely by the U.S. Department of Defense (DOD) and National Aeronautical and Space Administration (NASA). From these efforts, the impression was gained that the techniques were applicable in construction and maintenance (in the case of duPont) and to very-large-scale defense and space systems development. This impression has been promulgated by many authors of management books. With the advent of a variety of microcomputer-based project scheduling software and the availability and convenience of use of these packages, projects of all sizes have benefited from their application.
In the early years of MPM, the cost of application of project scheduling software was substantial for several reasons. The development of MPM has paralleled the development of computers. Early computers and software were primitive and expensive. The first PM systems were not user friendly. Considerable computer expertise was required and the methods required to use these techniques were inherently labor intensive. Today, both of these deficiencies have been overcome. User friendliness has made it possible for novice users to effectively use significant features of a package with only a couple of hours of introduction, generally from the user's manual, help messages, or tutoring programs. Training in the use of project management techniques has become widespread and many persons with project management responsibilities find it easy to plan their project in an on-line mode, with considerable benefit coming from a better understanding of the project and more accurate communication of their desired approach for the execution of the project.
Most managers and engineers have been involved in and many have managed projects. The degree and scope of responsibility assigned to these individuals has typically been rather limited, often with responsibility shifting from one individual to another as the project progresses through its various phases. Today, it is more common for an individual to be given responsibility for managing the project from its inception to its closure.
Thus, many changes have taken place in the management of projects. While project management may have seemed to be almost entirely the application of network-based techniques, today the use of these techniques for planning, scheduling and controlling can be considered, at most, 10 percent of MPM. Behavioral considerations, contract management, risk management, and other concepts have been recognized to be of far greater significance. Perhaps the appropriate view is that planning and scheduling techniques have improved in both usability and usefulness to such an extent as to permit the project manager, and the project management team, to perform the planning and control functions in much less time and effort, thereby affording them the time to also perform the other functions far better.
BENEFITS OF MPM
Sam finally completed a raft after several false starts. However, the project was completed late, over budget, and there were numerous complaints that the raft, as built, was not exactly what the client really had in mind. Nevertheless, the stakeholders were grateful, because Sam had still maintained a brilliant record of completing projects in a manner which exceeded expectations of that era.
The benefits of MPM have been reported in article after article in PMI's PMNETwork, Project Management Journal, and in Annual Seminar/Symposium Proceedings. Just a few of them are discussed below.
The development of the Endicott Oil Field production facility, the first offshore oil field north of the Arctic Circle, was accomplished at a substantial savings of both time and cost. While many of the facilities were produced on-site using contractors experienced in that milieu, the major process unit was built in Louisiana, moved on a 100-by-400 foot barge down the Mississippi, through the Panama Canal and the Bering Strait, and offloaded onto the man-made Main Production Island. This had to be accomplished within a six-week window when the Arctic Ocean was not frozen, or else the project would be delayed by a year [4].
The Voyager 2 Deep Space project involved three major agencies—National Science Foundation, National Radio Astronomy Observatory, and National Aeronautics and Space Administration—and facilities in the U. S., Spain and Australia. It had a window of opportunity when the relevant planets would be in proper juxtaposition, which required performance to schedule. The mission has been a major success to date and is expected to continue to return valuable data well into the 21st century, as it speeds out of the sun's magnetic influence and into interstellar space [1].
On May 11, 1990, a $70 million tin concentrator plant was dedicated in Portugal for Sociedade Mineira de Neves-Corvo. It was completed $4 million under budget and three months ahead of the 15-month schedule. This was “a remarkable achievement considering the tight schedule, complexity of the flowsheets, that equipment and material were imported from 13 countries on four continents and that only 5 percent of engineering had been completed before construction started” [2].
In South Africa, Sasol, a South African Petro Chemical Company, began production of polypropylene in February 1990, just 22 months after commissioning the R541.7 million project. The completed facility was designed to produce 120,000 ton/annum of polypropylene, fed by a 150,000 ton/annum polymer-grade propylene plant. The best schedule record previously for a facility of comparable capacities was 30 months. This outstanding performance “resulted from breaking new ground in project execution methods which will definitely influence the handling of future major projects.” The economic benefits of this project include employment for 250 people and “a massive R200 million/year savings in foreign currency for South Africa.” In addition to realizing these savings as much as eight months early, the early completion enabled Sasol to reach the market sooner and enhance their market share [12].
AT&T Business Communications Division has equipped all its project managers with laptop computers with a standard package of software including a Critical Path Method (CPM) -based project planning and scheduling program. To ensure that the project managers are competent in the other 90+ percent of PM knowledge and skills, they adopted the Project Management Institute's Project Management Professional Certification Program. Other companies have adopted this program as a strategic thrust to assure clients of the competency of their project managers. At least one organization has established PMP certification of PMs as a requirement for bidding on their projects [9].
More recently, project management was used to facilitate all the changes required in preparation for the formal merger of AT&T and NCR. The very large number of decisions and tasks necessary for such an undertaking were accomplished in just 90 days and done so well that customers were not inconvenienced as a result of the merger [5].
Xerox Corporation's United States Customer Operations-Information Management organization has implemented an enterprise-wide project management capability to plan, track, manage and evaluate all its projects and resources. This has resulted in a 10 percent productivity improvement through reduced training time for employees, reduced time to develop plans for new projects, reduced time to replan, and improved ability to react to deviations from plan [3].
Indeed, one of the first requirements to move from level one to level two in the Software Process Maturity Framework [13] is to install project management. This has proven to be beneficial to ensure that all participants in a project are working to the same objectives and that no work is going forward in the organization which is not a part of approved project plans.
This notion is reinforced by the experience of Syntellect, Inc., a high-growth computer system manufacturer of some 200 personnel, which embarked on a combined strategic planning and Total Quality Management implementation project. They soon recognized that to ensure focused attention on and to meet the target dates of this high priority project, it was necessary to use the MPM approach. From this experience they learned that “success of a strategic plan is far less dependent upon brainstorming and the development of ‘killer’ ideas than it is upon diligent project management of the very essential but often very ordinary ideas that emerge from the planning process [11].
While most of the projects above are large, complex, and technologically demanding, the same benefits can be achieved on much smaller, less demanding projects. Indeed, many organizations could achieve significant benefits by managing all change efforts using a project-oriented planning, scheduling, and controlling system. Such an effort was undertaken at the Detroit Universal plant of Chrysler Corporation in the 1960s using software that was primitive by today's standards. As a result, projects as simple as writing a new job description to Profit Improvement Projects (PIPS) with high corporate visibility were completed on schedule, a substantial improvement over past history. These benefits came primarily as a result of improved scheduling and utilizing the varied resources within the plant.
The benefits are clear. MPM, wedded to TQM, can save time and budget, improve implementation of strategic plans, and increase the competitiveness of all sorts of organizations.
CONCLUSION
Projects fill an essential need of society. Indeed, projects are the major mode in which change is accomplished in a society. It is the mode in which corporate strategy is implemented.
Projects need be neither large, hightech, nor complex. Their management is often complex due to the need to closely coordinate a wide variety of resources in a manner to efficiently and effectively achieve the objectives of the project. This is further compounded by the fact that the mix of resources/technologies/operations are constantly changing over the life of the project. And this must be accomplished by doing the right thing right the first time, often with a completely new set of players.
Modem Project Management is critical to the future of the project-oriented industries/organizations as they strive to match the performance of the volume manufacturing organizations in achieving quality and reliability levels for which defects are measured in parts per million. It is critical to all organizations that hope to survive in a world where change is happening at an increasing pace, for projects are the means for responding to, if not proactively anticipating, the environment and opportunities of the future. To delay implementing MPM is akin to taking a rest break in the midst of a heated competition … the aggressive leaders will most certainly move ahead.
ACKNOWLEDGMENT
Appreciation is expressed to the Project Management Institute, P.O. Box 43, Drexel Hill, PA 19026 for permission to use extensively material contained in the Project Management Body of Knowledge (PMBOK) [10] and other publications.